Bankruptcy

Mississippi Bankruptcy Exemptions

Like any other state in the United States of America, Mississippi also allows debtors certain Mississippi bankruptcy exemptions but does not offer any option (that are available in many other states) to replace the state-specific exemptions with the federal set of exemptions. When you go bankrupt, you have no other option to be content with whatever exemptions your state has to offer. However, like always, federal supplemental exemptions can still be used in addition to the assets and properties that are exemptible under state laws.

Wild Card

Certain Mississippi bankruptcy exemptions can be availed in the wild card category. You can exempt up to a maximum value of $50000 in any property that includes deposits of money also. It can be any tangible or intangible, mixed, personal, or real property. However, it is important to note that these exemptions are available to only those debtors that are at least seventy years old.

Wages

Thirty of unpaid but earned wages are exemptible in full. But, after this 30-day period, you can exempt either thirty-times the minimum hourly wage (as per federal law) or at least 75% of the weekly wages (earned but unpaid), whichever is greater. However, judges have the right to consider a higher limit in Mississippi bankruptcy exemptions in this category if the regular monthly income of the debtor is very low.

Tools Of Trade

Though almost every state offer certain exemptions for tools of trade, but Mississippi makes an exception here. No exemptions are allowed in this category.

Public Benefits

Certain types of public benefits that can be exempted in full include workers’ compensation, unemployment compensation, social security, crime victims’ compensation, assistance to disabled, assistance to blind, and assistance to aged.

Personal Property

Mississippi bankruptcy exemptions can be availed for the following personal properties and assets.

- 100% of Any benefits that you are receiving as part of the prepaid MPACT (Mississippi Prepaid Affordable College Tuition) Program
- 100% of Tax-qualified education savings plans
- Up to $5000 in State tax refund
- 100% of State health savings accounts
- 100% of insurance or sale proceeds for exempt property
- Up to $10,000 in personal injury judgments
- Up to $30,000 in mobile home
- Up to $5,000 in federal tax refund

Pensions

Mississippi bankruptcy exemptions are available for the following types of pension benefits.

- 100% of volunteer firefighters pensions (including death benefits)
- 100% of teachers pensions
- 100% of state employees pensions
- 100% of qualified state health savings accounts
- 100% of retirement & disability benefits of public employees
- 100% of private retirement benefits (up to the extent that are tax-deferred)
- 100% of police officers pensions (including death benefits)
- 100% of law enforcement officers pensions (including death benefits)
- 100% of highway patrol officers pensions
- 100% of firefighters pensions (including death benefits)
- 100% of Keoghs, IRAs, and other ERISA-qualified benefits provided there were deposited over twelve months before petition filing.
- Up to $5000 from earned income tax credit

No Exemptions Under Miscellaneous Category

Unlike other states, Mississippi does not allow any type of exemptions under the miscellaneous category. It means if you are receiving any alimony payment or child support payment, you may not be able to receive the same after getting bankrupt under chapter 7 in this state.

Insurance

Mississippi bankruptcy exemptions can be availed for the following types of insurance policies and proceeds.

- 100% of life insurance proceeds provided there is a specific clause that prohibits the policyholder from using the proceeds to pay to a creditor.
- Up to $75,000 of homeowner’s insurance proceeds
- 100% of fraternal benefit society benefits
- 100% of disability benefits

Homestead

If you do not own the land on which your mobile home is located, you cannot avail the homestead exemptions for the same. Other homestead properties that you own or occupy can be exempted up to a maximum equity value of $75,000. A former residence can also be claimed by those who are at least sixty years old and are either widowed or married. It is also important to note that a person must file homestead declaration before filing the petition for bankruptcy in order to qualify for the Mississippi bankruptcy exemptions for homestead properties.


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One Response to “Mississippi Bankruptcy Exemptions”

  1. Martin says:

    Very wonderful and great points. Mississippi offers its debtors some exemptions but there is no provision to replace these exemptions with the federal set of exemptions. If you have declared bankrupt then you have to follow only the exemptions provided with your state. You can use federal supplemental exemptions also with state specific exemptions. It is very important to study all the laws applicable in your state in case of bankruptcy. The knowledge plays an important role to take the benefit of laws, unpaid but earned wages can be exempted up to a certain limit but if you can give the proof of your low income, the judges can increase the limit of exempted wages. Surprisingly, Mississippi gives no exemptions in the category of tools of trade. Public benefits like workers compensation, social security can be fully exempted. Pension benefits can be exempted in specified categories. Similarly, personal properties and assets can also be exempted in specific categories. No miscellaneous category exemptions are allowed. Exemptions are available for some type of insurance policies. Homestead property can also be exempted up to a maximum specified limit.

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